'Stay away from Tesla, Argentina and Bitcoin', says Gateway's CEO

02 Jan, 2019
by Joeri Cant
'Stay away from Tesla, Argentina and Bitcoin', says Gateway's CEO

The chief executive of investment house Gateway Partners , Viswanathan Shankar, told the Nikkei Asian Review, that he remains opposed to investing in digital currencies and that he will not be allocating any of their funds to the emerging technological and financial innovation.

Shankar, a career banker who formerly sat on the board of Standard Chartered and served as CEO for Europe, the Middle East, Africa and the Americas, originally warned against investing in the space in 2017. Despite much lower crypto prices today, he remains decided to not allocate any of his fund’s capital to Bitcoin and other cryptos.

Gateway Partners connects private capital to investment opportunities across the dynamic growth markets of Africa, Middle East, South Asia and South East Asia.

One of three targets Shankar cautioned against at the end of last year was Bitcoin, along with Argentina and Tesla. In his view, all of them were showing serious signs of 'irrational exuberance.'

'I think I have been proven right on all three', Shankar said.

'Bitcoin began its plunge at the beginning of 2018, Argentine bond yields have shot up amid a brewing financial crisis and Tesla is struggling with governance issues.

Read more: 'Ripple’s XRP is a better bet than Bitcoin' says Phillip Nunn

Shankar doesn't invest in what he deems to be fads. He favours investments based around basic amenities, with a focus on companies that provide goods and services that the everyday person needs in both Africa and Asia.

'We are for biscuits, not bitcoins', Shankar said.

In November Shankar was appointed as an Intra-African Trade Fair Goodwill Ambassador.

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